Australia scored lower than other advanced economies and even emerging markets in a new Swiss Re study on life and health insurance availability, accessibility and affordability.

The country placed seventh with an aggregate score of 0.52 in the study of 16 economies compiled by the Swiss Re Institute’s Life and Health Insurance Inclusion Radar report. A score closer to 1 represents a high level of inclusion while a score closer to 0 infers a lack of inclusion.

The US leads with 0.67, followed by Japan (0.66), Canada (0.64), South Africa (0.62), the UK (0.61), India (0.52) and then Australia. South Africa and India are two of 11 emerging markets included in the study.

Swiss Re says the scores to measure “inclusive insurance” are based on the availability and accessibility of insurance, and the affordability of insurance products/services in each market.

“We consider inclusive insurance to be the provision of appropriate risk protection cover to all people in society,” the study says. “The underlying assumption of this study is that when life and health insurance is more inclusive, the industry will be better positioned to help narrow mortality and health protection gaps.”

The study says in advanced markets, a key driver of availability is the provision of a wide range of cover types and innovative product options to suit consumer needs.

All advanced markets except Australia performed similarly on availability. The study says a potential explanation could be related to regulatory reforms after the Hayne royal commission into financial sector misconduct.

Australia scored 0.47 on availability while the US led with 0.73, Japan scored 0.55, Canada 0.66 and the UK 0.72.

“Relative to the four other advanced markets in our sample, Australia lags on accessibility and availability inclusion scores, hurt in particular by low scores for life insurance reach, distribution diversity and a poor showing for underwriting spectrum,” Head of Sustainable Life and Health Delivery Melissa Leitner told insuranceNEWS.com.au. 

The study says the reforms aimed to prevent high-pressure selling, misrepresentation and unfair contract terms in the country’s financial services sector.

“Increased disclosure requirements from those reforms led to a quality of advice review by the Australian Treasury starting in 2022, proposing further reforms to make it easier for customers to obtain sound financial advice,” the study says.

The review has attracted more than 100 industry submissions…with the intention to restore better levels of inclusion for consumers.”